Bob McCarty Writes

On this day when the nation’s Big Three Automakers were required to submit plans for turning around their respective companies and, simultaneously, file the equivalent of a loan application to Congress, I thought it would be worthwhile to take a look at the plans submitted.

CHRYSLER

In addition to using a colorful graphic (above) to communicate their message, Chrysler executives used a less-than-unique approach to spinning their bailout message, saying on the company’s web site that “IT’S NOT A BAILOUT TO KEEP US FROM FAILING. IT’S A LOAN TO HELP US SUCCEED” before outlining its bailout plan in six points:

1. We will invest in the creation of new technologies for reduced emissions and emission-free electric vehicles that support our country’s energy security and environmental improvement goals.

2. We will stand behind our products like no one else. In 2007, we introduced the Chrysler Lifetime Powertrain Warranty providing the best warranty coverage in the industry. This is the first of its kind to be offered by any automaker . . . ever.

3. We will make our vehicles cleaner and more environmentally responsible than mandated by government standards. Right now, Chrysler offers six vehicles that are considered very good environmental performers relative to competitors. These have received the SmartWay® certification and are recognized by the U.S. Environmental Protection Agency for having tailpipe emissions significantly lower than environmental thresholds. In other words, they’re cleaner than they have to be.

4. We will devote ourselves to building desirable vehicles while reinvesting and preserving our environment. In order to reduce CO2 emissions at all Chrysler LLC plants, we are striving to use energy as efficiently as possible, as well as employing low-carbon energy sources wherever possible. This approach allowed our manufacturing facilities to reduce absolute CO2 emissions by more than 17% from 2002 to 2006.

5. We will continue to improve our manufacturing productivity. In fact, we now equal Toyota as America’s most productive automaker in terms of hours of assembly per vehicle, according to Oliver Wyman’s The Harbor Report North America 2008.

6. We will empower American ingenuity to build smarter vehicles using smarter materials. Chrysler LLC is committed to reducing the different types of plastics used in their vehicles, eliminating harmful substances and increasing the recycled material content in our vehicles.

Though Chrysler uses a lot of active verbs (i.e., invest, stand, make, devote, improve and empower), the plan appears to lack substance (surprise!).

FORD MOTOR COMPANY

In a news release issued today, Ford offered the bullet points below as a summary of the plan its executives submitted to Congress:

• Based on current business planning assumptions, Ford expects both its overall and its North American Automotive business pre-tax results to be breakeven or profitable in 2011

• Ford provided initial details of an accelerated vehicle electrification plan for a family of hybrids, plug-in hybrids and battery electric vehicles.  The plan includes a Ford full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011

• Ford’s plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years

• Ford said it will sell its corporate aircraft as part of its overall cash improvement plan

Ford also provided its business plan [Ford Motor Company Business Plan (PDF)] and a slide show [(Congressional Submission Appendix (PPT)] for site visitors to download.

In asking for approximately $9 billion, Ford appears to be taking the “Baffle ‘em with Bulls_ _ _” approach with Congress, relying upon the fact that most members of Congress will never read the plan and only required its preparation as a prop for another dog-and-pony show in the halls of Congress.

GENERAL MOTORS

During a visit to General Motors’ web site, I came up “dry” in my search for a business plan.  I did, however, find the company’s so-called “Facts About the Auto Crisis.” Beware though.  The “spin” is pretty thick on this one.

More to come…